European prices have posted impressive gains over the past month, driven higher by improving demand from regional steelmakers, as well as by growing concerns over the conflict between Russia and Ukraine, both key ferro-alloy supplying countries. We expect European ferro-silicon prices to remain elevated into the second quarter on both improved underlying fundamentals, but also propelled higher by psychological factors underpinned by uncertainty regarding the situation in the Ukraine. US prices are holding for now, but look vulnerable given the US government's preliminary decision in favour of Russian suppliers, as well as rapidly rising imports from China. Chinese ferro-silicon markets continue to struggle as slower demand from steelmakers more than offsets ferro-silicon furnace closures.
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